Another USD F/X Credit Card Option

[cdnSpinalTap]

Hello,

I just noticed today that Amazon.ca is offering an MBNA Rewards MasterCard that gives you 2.5% back on foreign currency purchases, if you have a prime membership.

Other benefits include:

• Special Welcome Offer: get 5% back at Amazon.ca, Whole Foods Market stores in Canada, grocery stores and restaurants for the first 6 months! (Valid on first $3,000 in eligible purchases.)
• Earn rewards on all your eligible purchases at Amazon.ca—including Whole Foods Market stores in Canada‡!
• Earn 2.5% back on eligible purchases at Amazon.ca, Whole Foods Market stores in Canada and on foreign currency transactions with an eligible Prime membership.
• Otherwise, get 1.5% back at Amazon.ca and Whole Foods Market stores in Canada.
• Get 1% back on ALL other eligible purchases, wherever Mastercard is accepted.
• Use your rewards at Amazon.ca—apply rewards directly to eligible Amazon.ca items.
• No annual credit card fee.

Obviously there are lots of threads on here discussing the various F/X strategies, so this was not to add or take away from that discussion - just an FYI that there is now another option.

 

[von Monster]

From their own FAQ:

If the Amazon.ca Rewards Mastercard is linked to an Amazon.ca account with an eligible Prime membership, the credit card will earn 2.5% back on foreign currency transactions; otherwise, eligible foreign currency transactions earn 1% back (Offer Details). Foreign exchange fees are still applicable on all foreign transactions and are determined by the MBNA, a division of The Toronto-Dominion Bank. Please note that the amount of foreign exchange fees may equal or exceed the % back earned on foreign currency transactions.

and from the disclosure form when you apply:

All transactions and payments made in a foreign currency will be converted to Canadian dollars. Transactions will be converted at a rate equivalent to the benchmark rate set by the payment card network under which your card is issued in effect on the date that we process the transaction, plus an amount equal to 2.5% of the transaction amount after it has been converted. Payments will be converted into Canadian dollars at a rate equivalent to the Bank of Canada rate reported at the close of business on the day immediately preceding the date that we process the payment, plus an amount equal to 2.5% of the foreign currency payment amount.

It looks like the best you can hope for is a wash on the fees or be slightly down depending on how they calculate the 2.5% on the fee/reward.

 

[cdnSpinalTap]

It looks like the best you can hope for is a wash on the fees or be slightly down depending on how they calculate the 2.5% on the fee/reward.

Yes - certainly would not be on my radar as an option, but at least there are more choices these days.